Tech stocks could be hit badly in 2025 and this is the main reason
US China trade war is intensifying as we speak, and this situation may deteriorate in the coming months, based on the upcoming US President Donald Trump's plans to impose as much as 25% tariffs on products manufactured in China.
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The US is aggressively trying to limit China's accessibility to technology, especially those semiconductors required for AI research and development. This has resulted in a major issue as companies like Nvidia, Intel, IBM, and other chipmakers are now caught in the crossfire, with the latest market challenges restricting these companies' growth prospects, which could impact their future at the US stock market.
Will the US China trade way affect AI companies?
If this situation worsens over time, it would clearly mean that once the AI overhype dies down in the US, things could get complicated for the chipmakers and companies currently shining though AI-based research and development. There are certain aspects in the US China trade war that could impact the revenue streams of both countries, but these tariffs are apparently targeted to benefit the local industries of the US, but market experts are of the opinion that an inflation may arrive once prices of products in US go up.
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Since China-made products have a relatively lesser price than US-manufactured goods, this clearly means that once the Trump tariffs are imposed on
